The Croatia international has been a key catalyst at the heart of the Real Madrid midfield, which has lifted the Champions League title in two of the last three seasons.

According to The Express, the European champions could be willing to discuss a deal with the Bundesliga holders with Modric approaching his 32nd birthday in September.

Bayern boss Ancelotti has shown his faith in the old guard in Bavaria since his arrival, and it is understood that he could line up a &pound27m bid in order to land the ex-Spurs man in the summer.

Meanwhile, Los Blancos president Florentino Perez appears to have already lined up a successor with Liverpool's Coutinho at the top of the radar.

Reds coach Jurgen Klopp has repeatedly iterated that the club will not be offloading Coutinho, who inked a long-term deal earlier this year, but the Brazil international could yet push for a move, should his side fail to qualify for next season's Champions League.

Liverpool are currently third in the Premier League with 66 points, but they face the prospect of being overtaken by the likes of Manchester City, Manchester United and Arsenal, who have games in hand.